Ethereum just vaulted by +11% to start the month, breaking above the $3.8k mark for the first time since May 8th.

However, Ethereum's price rally is also accompanied by a massive uptick in average transaction fees, which are hovering at 44(!) USD at the time of writing:

In terms of average trx fees, this makes September 1st the fifth busiest day in the history of the network.

In such conditions, it's not a surprise that the amount of daily addresses interacting with ETH currently sits at 515k, down -35.5% compared to the last time that ETH was at $3.8k:

With exorbitant fees pricing out low-ROI transactions, Ethereum's network activity will likely suffer in the short-term.

Which begs the question - will ETH be able to chart a new price all-time high with sub-optimal fundamentals? This especially as similar spikes in trx fees coincided with short-term price corrections in the past.

Watch this space.